Yael Selfin, Chief Economist at KPMG UK commented on on today’s inflation figures
“End of sales sees inflation moving within the cusp of Bank of England’s target” says Yael Selfin, Chief Economist at KPMG UK:
“Solid wage growth and minimal spare capacity could encourage the Bank of England to raise rates once more by November this year to 1%.
“Strong services inflation compared to goods inflation point at the simmering inflationary pressures as a result of rising wages and the record tight UK labour market.
”Our expectations are for inflation to average around the Bank of England’s 2% target this year but to rise further in 2020, putting pressure on them to act more aggressively than markets currently anticipate.”
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